Virgin Atlantic has renewed an application services deal with EDS for five years.

The UK’s second largest passenger airline has already worked with EDS throughout the 25 years since its launch, with the services supplier providing application development and the hosting of reservation services.

It will also set up a new reservation system under the deal, for which a value has not been disclosed. The system will be based on EDS Reservation Services, which is hosted by the IT services firm.

The reservation system will also include Electronic Miscellaneous Documents, which allow Virgin Atlantic employees to electronically capture paper documents pertaining to sales. Ticket reissue and refund software, which aims to automate the process and improve customer service, will also be included.

Additional software will be provided by Microsoft.

Virgin Atlantic, which has six million passengers each year, will also implement EDS service oriented architecture, called AirlineSOA, in an attempt to better integrate its operations, lower costs and launch new services quickly.

Mike Cope, IT director at Virgin Atlantic, said the new systems would help the airline use a service-oriented architecture "to provide improved customer services, greater agility and lower costs”.

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